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Corporate Culture

Terms in this set (14)

Corporate Culture
- Definition
A shared pattern of beliefs, expectations and meanings that influence and guide the thinking and behaviors of the members of that organisation
Corporate Culture
- Characteristics
- Shapes the members of organisation
- Shaped by the members of organisation
- Conflict when joining a corp culture that supports other values
- No culture is static
Corporate culture's sustaining value
- Offers benefit of direction and stability during challenging times
- Can act as a constraining barrier to change and innovation
Corporate culture
- influences and norms
- Tempo of work
- Approach to humour
- Methods of problem-solving
- The competitive environment
- Incentives
- Individual autonomy
- Hierarchical structure
Ethical culture
One in which employees are empowered and expected to act in ethically responsible ways even when the law does not require it.
Compliance Culture
- Definition
- Emphasize obedience to the rules as the primary responsibility of ethics
- Legal and audit offices to mandate and monitor compliance with the law and internal codes
Compliance Culture
- Characteristics
- Traditional
- Audit & financial account focus
- Transaction based
- Compliance objective
- Policy and procedure adherence
Value-based culture
- Definition
- Reinforce a particular set of values, over rules
- codes of conduct, rooted in statement of values
Value-based Culture
- Characteristics
- Progressive (best practices)
- Business & customer focus
- Process based
- Risk identification, process improvement objective
- Risk management focus
Value-based Culture
- Argument over compliance
- Compliance culture is as strong and precise as the rules
- Rules can never unambiguously apply to every situation

- Where rule does not apply, firms rely on personal integrity (values) of workforce on decisions.
Compliance Culture
- Goals
- Meeting legal and regulatory requirements
- Minimizing risks of litigation and indictment
- Improving accountability mechanisms
Value-based Culture
- Goals
More evolved, inclusive and broader
- Maintaining brand and reputation
- Recruiting and retaining desirable employees
- Helping to unify a firm's global operations
- Creating a better working environment for employees
- Doing the right thing & doing things right
Ethical Leadership
Corporate leadership, set the tone
- to support ethical decision making
- to allocate corporate resources to support and promote ethical behavior
Effective vs Ethical Leadership
- Effective leaders achieve goals through threats, intimidation, harassment and coercion
- Ethical leaders lead using more amenable interpersonal means such as modeling ethical behavior, persuasion or impact.
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